Archive - Aug 12, 2009

Anonymous's picture

Don't Be Too Bearish on the Bonds, Seriously





Everybody loves to hate the bonds. “Confetti”, “certificates of confiscation”, “wall paper” are some recent terms used to describe them. I agree, it sounds like a loser's bet to give your money away to that “malfunctioning corporation called America” (Gordon Gekko, correct me if I am misquoting) for a measly 3.75% a year for 10 years. So why not short them?

 

Tyler Durden's picture

The Everyman's Guide To The Credit Crisis





Must read

 

Bruce Krasting's picture

Treasury's New Solution: "Greenies"





The Fed's decision to wind down their bond purchase program puts more pressure on Treasury. Geithner and Co. are working on a plan to solve these minor problems. Greenies are coming.

 

Tyler Durden's picture

The $500/Email Bankruptcy Bonanza, Or Does Capstone Heart Flight Club





Bankruptcy advisors are increasingly having to defend the exorbitant fees (expenses, not so much - see below) that they are charging from their zombied clients, which in the absence of traditional banker products has become one of the primary sources of revenue for whatever is left of the financial advisory industry. A wonderful case in point is today's defense by Evercore of the ridiculous fees they collected for quote-unquote advising on the most predetermined and advice-remote transaction in the history of bankruptcy, i.e. the nationalization of General Motors via the stalking horse legitimization mechanism.

 

Tyler Durden's picture

Elizabeth Warren "We Have A Real Problem Coming"





The head of the Congressional Oversight Panel provides a solid dose of reality, and some scary words for the bulls.

 

Tyler Durden's picture

Daily Credit Summary: August 12 - Bearish Breadth





Spreads were mostly wider in the US today as ExHVOL is the only index tighter thanks to HVOL's underperformance (with HY underperforming IG as the former broke above 800bps intraday). Indices generally outperformed intrinsics (as it appears single-name protection buyers were hedging with index protection) with skews widening in general as IG's skew decompressed as the index beat intrinsics, HVOL outperformed but widened the skew, ExHVOL outperformed pushing the skew wider, XO's skew increased as the index outperformed, and HY outperformed but narrowed the skew. IG opened gap at its wides and did leak tighter most of the day but intrinsics did not follow and the weakness in HY suggests that investors were looking at HY-IG decompression.

 

Tyler Durden's picture

Closing Market Summary





  • IG Wider 0.5bps to 113.5
  • HY Wider -7/16 to 89 7/16
  • Stocks... closing at VWAP.
 

RobotTrader's picture

AMAT Starter Pistol Fires, FOMC Speaks, and Girls Go Wild





Another classic 1999 day where the "AMAT train is leaving the station" starter pistol is fired to get the SMH greyhounds running, and Bernanke utters some soothing words for the speculators to start a post-FOMC party.

 

Tyler Durden's picture

The New Dollar Normal





No Comment.

 

Tyler Durden's picture

Afternoon Market Summary





IG12: 114bps + 1.5 bps (weaker)

IG12 intrinsics: +6 bps (much weaker)

HY12: 791bps + 10 bps (weaker)

HY12 intrinics: +31 bps (much weaker)

30 Year: 4.52%, +8 bps (weaker)

DXY: poundage

Equities: who cares, just feed more redbull to WOPR

 

 

Tyler Durden's picture

Substantial Confusion Percolates On Volume Ramp





Left Right Left Right Up Down Up Down A B A B Reset Start (Triangle Square for extra lives)

 

Tyler Durden's picture

FOMC Minutes





QE Ending: "To promote a smooth transition in markets as these purchases of Treasury securities are completed, the Committee has decided to gradually slow the pace of these transactions and anticipates that the full amount will be purchased by the end of October."

 

Travis's picture

The Feds & UBS Reach a Squeal of a Deal





Yeah, the Swiss... "Oh, they're neutral? right?" Haven't they always been? "They say nothing?" Well, maybe not then- but now, the Feds and UBS AG have reached a deal to squeal on some 52,000 potentially tax-evading Americans.

 

Tyler Durden's picture

$23 Billion 10 Year Auction Results





Results out: only $14.4 billion indirects tendered out of total $57 billion competitive. Of the $14.4 billion, $10.4 billion was allocated. Indirect bids 45.7% vs. Avg. 35.25% (Prev. 32.11%). Indirect bid-to-cover was 1.39. Overall bid-to-cover including highly motivated primary dealers was 2.49. Allocated at 3.734% high yield vs expected 3.708%.

 

Tyler Durden's picture

IWM-SPY Unwind In Process?





Crap stocks (RUT) outperforming quality (SPY) again. The early morning action was likely precipitated by some colorful index arbing.

 
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